Foreign Investors Cheer New Policy Plan

Foreign investors are welcoming moves by the Investment Coordinating Board to push for changes to the much-maligned “negative investment list,” which limits foreign ownership in a number of sectors.

Gita Wirjawan, chairman of the board, known as the BKPM, said on Monday that the government was finalizing the revisions that would open five sectors to foreign investment, and it was expected to be completed within two months.

Under the revised list, foreign investors would be able take ownership stakes in companies in the five sectors.

As an example, Gita said that foreign companies would soon be allowed to take a maximum 67 percent stake in hospitals and other health care facilities nationwide, after previously being restricted to Medan and Surabaya.

Gita said this would reduce the number of Indonesians seeking medical care abroad, boosting the nation’s income.

“We hope that with foreign investors investing in our country’s health care system, it will increase the quality of our health care and Indonesians will rely on it more,” he said.

In the longer term, he hoped knowledge would be transferred from foreign health care workers to domestic personnel.

Foreign ownership in the film and logistics industries will be limited to 49 percent.

In the education sector, the government will create a body to replace the non-profit Legal Education Entity (BHP). Foreign investors will be allowed to put their money into the body, which would operate private schools and offer educational services.

In the telecommunications sector, there is still a debate within the Information Ministry about whether foreigners should be allowed to buy cellular telecommunication towers and other infrastructure.

Gita promised to find the “best solution” for this sector.

For 2010, Gita has set an investment target of at least $5 billion, and a target of $33 billion over the next five years.

“I would like to attract not dozens of [small] projects, but big ones that can reach $1 billion,” Gita said.